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WeCommerce Reports First Quarter 2022 Results, Q1 Revenue up 100% to $12.1 Million
Monday, June 20, 2022Company Profile | Follow Company
Victoria, BC, June 20, 2022--(T-Net)--WeCommerce Holdings Ltd. (TSXV: WE), a provider of ecommerce enablement software and tools for merchants, has announced its financial results for the three-month period ended March 31, 2022 ("Q1 2022").
Currency amounts are expressed in Canadian dollars unless otherwise noted.
Q1 2022 Financial Results: |
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For the three-months ended March 31, |
|
|
2022 |
2021 |
Revenue |
|
|
Recurring subscription revenue |
7,354,028 |
2,279,842 |
Digital goods revenue |
3,745,630 |
2,171,548 |
Agency service revenue |
994,101 |
1,587,830 |
|
12,093,759 |
6,039,220 |
Operating loss |
(1,278,597) |
(136,116) |
Net income/(loss) |
790,114 |
(1,757,976) |
EBITDA (1) |
4,493,740 |
492,668 |
EBITDA % (1) |
37% |
8% |
Adjusted EBITDA (1) |
2,831,783 |
2,000,974 |
Adjusted EBITDA % (1) |
23% |
33% |
Cash provided by operating activities |
3,907,177 |
1,296,976 |
Notes: |
Q1 2022 Highlights
Management Commentary
"In the first quarter, we continued to drive healthy year-over-year growth in Apps and Themes and bolstered our leadership in our Agency business to reinvigorate growth in that segment. Our core portfolio companies, including Stamped, Archetype, and Foursixty, continue to perform well, providing stability in an otherwise turbulent ecommerce market. We continue to generate significant cash flow, with over 30% operating cash flow margins once again this quarter. With our favorable liquidity position, supported by more than $26 million in cash on hand, we will continue to be opportunistic in evaluating a highly compelling M&A landscape while reinvesting in the growth and success of our existing portfolio in the meantime."
Financial Statements
WeCommerce's consolidated financial statements and Management's Discussion and Analysis ("MD&A") for Q1 2022 are available on the Company's website at https://www.wecommerce.co or on SEDAR at www.sedar.com .
About WeCommerce Holdings Ltd
WeCommerce provides merchants with a suite of ecommerce software tools to start and grow their online stores. Our family of companies and brands includes Pixel Union, Out of the Sandbox, KnoCommerce, Archetype, Yopify, SuppleApps, Rehash, Foursixty and Stamped. As one of Shopify's first partners since 2010, WeCommerce is focused on building, acquiring, and investing in leading technology businesses operating in the Shopify partner ecosystem.
For more about WeCommerce, please visit www.wecommerce.co or refer to the public disclosure documents available under WeCommerce's SEDAR profile on SEDAR at www.sedar.com.
Non-IFRS Financial Measures
This news release makes to reference to certain non-IFRS measures and ratios, hereafter, referred to as "non-IFRS measures". These measures are not recognised measures under IFRS, and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the financial information reported under IFRS. The Company uses non-IFRS measures including "EBITDA", "EBITDA %", "Adjusted EBITDA", "Adjusted EBITDA %", and "Constant Currency". Management uses these non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. As required by Canadian securities laws, the Company defines and reconciles these non-IFRS measures below:
EBITDA and EBITDA %
EBITDA is defined as earnings (net income or loss) before finance costs, income taxes, depreciation and amortization. EBITDA is reconciled to net income (loss) from the financial statements.
EBITDA % ratio is determined by dividing EBITDA by total revenue for the year.
EBITDA and EBITDA % is frequently used by securities analysts and investors when comparing the Company's results to other companies. EBITDA and EBITDA % are measures commonly reported and widely used as a valuation metric.
Adjusted EBITDA and Adjusted EBITDA %
Adjusted EBITDA removes unusual, non-cash or non-operating items from EBITDA such as listing expenses, acquisition costs, restructuring charges, asset impairments, non-cash stock-based compensation, fair value adjustments to contingent consideration payable and foreign exchange gains and losses. The Company believes adjusted EBITDA provides improved continuity with respect to the comparison of its operating performance over a period of time. Adjusted EBITDA is reconciled to net income (loss) from the financial statements.
Adjusted EBITDA % is determined by dividing Adjusted EBITDA by total revenue for the year.
Adjusted EBITDA and Adjusted EBITDA % is frequently used by securities analysts and investors when comparing the Company's results to those of other companies. It provides a consistent basis to evaluate profitability and performance trends by excluding items that the Company does not consider to be controllable activities for this purpose. Adjusted EBITDA and EBITDA % are measures commonly reported and widely used as a valuation metric.
Constant Currency
Constant currency is determined by applying the same foreign currency exchange rates to the financial results of the current and equivalent prior-year period. The Company's reporting currency is the Canadian dollar but we conduct business in Canadian, U.S and Singapore dollars. The Company measures its performance before the impact of foreign currency. Constant currency is reconciled to revenue from the financial statements.
The Company believes Constant Currency allows for current financial performance to be understood against comparative periods without the impact of fluctuations in foreign exchange rates against the Canadian dollar.
NON-IFRS MEASURES RECONCILIATIONS
E BITDA and Adjusted EBITDA |
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For the three-months ended March 31, |
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|
2022 |
2021 |
Net income/(loss) |
790,114 |
(1,757,976) |
Income tax expense |
41,625 |
(39,821) |
Depreciation and amortization |
3,064,477 |
956,964 |
Finance costs |
597,524 |
1,333,501 |
EBITDA |
4,493,740 |
492,668 |
|
|
|
EBITDA adjustments |
|
|
Stock-based compensation |
901,365 |
259,909 |
Foreign exchange (gain)/loss |
(560,770) |
448,804 |
Acquisition costs |
104,819 |
777,684 |
Fair value adjustments of contingent consideration |
(2,147,090) |
- |
Non-recurring professional fees |
- |
9,961 |
Severance costs |
41,316 |
- |
Loss on disposal of assets |
(1,597) |
11,948 |
Adjusted EBITDA |
2,831,783 |
2,000,974 |
EBITDA % and Adjusted EBITDA % |
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For the three-months ended March 31, |
|
|
2022 |
2021 |
EBITDA |
4,493,740 |
492,668 |
Revenue |
12,093,759 |
6,039,220 |
EBITDA % |
37% |
8% |
|
|
|
Adjusted EBITDA |
2,831,783 |
2,000,974 |
Revenue |
12,093,759 |
6,039,220 |
Adjusted EBITDA % |
23% |
33% |
Constant Currency |
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For the three-months ended March 31, |
% Change |
|||
|
2022 |
2021 |
As reported |
Foreign exchange impact |
Constant currency |
Revenue |
|
|
|
|
|
Recurring subscription revenue |
7,354,028 |
2,279,842 |
223% |
(1%) |
222% |
Digital goods revenue |
3,745,630 |
2,171,548 |
72% |
-% |
72% |
Agency service revenue |
994,101 |
1,587,830 |
(37%) |
-% |
(37%) |
Cautionary Note Regarding Forward-Looking Information This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and forward-looking statements in this press release includes, but is not limited to, information and statements regarding: whether and when the Acquisition will be consummated; the anticipated benefits of the Acquisition; the Company's revenue and cash flow upon completion of the Acquisition, the anticipated timing for closing of the Acquisition; the Company's belief that the Acquisition will provide significant value to shareholders; the Company obtaining and/or satisfying customary approvals and conditions, including TSXV approval for an expedited acquisition; and expectations for other economic, business, and/or competitive factors. [ MORE ] |
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